The Cash Flow Statement for Manadi Plc for the year ended 31 December 20X8 is as follows:

m

Cash flows from operating activities

Cash generated from operations (see note below) 1,036 Finance costs paid (80) Tax paid (296) Net cash from operating activities 660

Cash flows from investing activities

Purchase of property, plant and equipment (524) Proceeds from sales of property, plant and equipment 80 Interest received 40 Net cash used in investing activities (404)

Cash flows from financing activities

Issue of long-term interest-bearing borrowings 400 Dividends paid (280) Net cash used in financing activities 120

Net increase in cash and cash equivalents 376 Cash and cash equivalents at start of period 160 Cash and cash equivalents at end of period 536

Note: Reconciliation of profit before tax to cash generated from operations

m

Profit before tax 640 Finance cost 80 Investment income (40) Depreciation charge 380 Loss on sale of property, plant and equipment 24 Decrease in inventories (496m - 480m) 16 Increase in trade and other receivables (584m - 320m) (264) Increase in payables (824m - 624m) 200 Cash generated from operations 1,036

Required:

a) Analyse the statement of cash flows of Manadi plc for the year ended 31 December 20X8 and discuss the companys cash management over the year. (Word count guidance: 400 500 words).

b) Explainthepurposeofastatementofcashflowsanddiscusswhyastatementof cash flows is useful for a business. (Word count guidance: 300 400 words).

The Cash Flow Statement for Manadi Pic for the year ended 31 December 2016 s as follows: Em 1,036 180) Cash flows from operating activities Cash generated from operations (see note below) Finance costspaid Tax paid Net cash from operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Interest received Net cash used in investing activities Cash flows from financing activities besoe of long-term interest-bearing borrowings Dividends paid Net cash used in financing activities 400 (280) Net increase in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period 376 160 Note: Reconciliation of profit before tax to cash generated from operations 640 Profit before tax Finance cost Investment income Depreciation charge Loss on sale of property, plant and equipment Decrease in inventories (490m - 480m) hcrease in trade and other receivables ($984m - 220m) Increase in payables (E824m-5624m) Cash generated from operations (40) 380 24 16 1036 Required: a) Analyse the statement of cash flows of Manadiple for the year ended 31 December 20x8 and discuss the company's cash management over the year. Word count guidance: 400-500 words) b) Explain the purpose of a statement of cash flows and discuss why a statement of cash flows is useful for a business. (Word count guidance: 300 - 400 words) Question 3 The Cash Flow Statement for Manadi Plc for the year ended 31 December 20X8 is as follows: m Cash flows from operating activities Cash generated from operations (see note below) Finance costs paid Tax paid Net cash from operating activities 1,036 (80) (296) 660 (524) 80 40 (404) Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Interest received Net cash used in investing activities Cash flows from financing activities Issue of long-term interest-bearing borrowings Dividends paid Net cash used in financing activities I Net increase in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period 400 (280) 120 376 160 536 Note: Reconciliation of profit before tax to cash generated from operations Profit before tax Finance cost Investment income Depreciation charge Loss on sale of property, plant and equipment Decrease in inventories (496m - 480m) Increase in trade and other receivables (584m - 320m) Increase in payables (824m - 624m) Cash generated from operations m 640 80 (40) 380 24 16 (264) 200 1,036